Office Locations:Charlotte Office
4201 Congress Street, Suite 475
Charlotte, NC 28209 New York Office
3 Columbus Circle, 17th Floor, Suite 1730
New York, NY 10019 San Francisco Office
445 Bush Street, Suite 700
San Francisco, CA 94108
States They Lend In: All 50 EXCEPT Idaho and Utah
Loan Program # 1 - Portfolio Pro
Financing for Growing Rental Portfolios
Portfolio Pro is designed to help savvy investors unlock equity and get more cash out of their existing rental investments. With Portfolio Pro, you can consolidate multiple rental properties and mortgages into a single loan so you can continue to grow your portfolio. With attractive rates and up to 75% loan-to-value (LTV) on fixed-rate loans, these loans are a great way to get cash out from your existing rental properties. Interest-only loans are also available. Portfolio Pro loans begin at $700K for 7 or more properties with no personal income verification.*
Get Cash From Your Existing Rental Portfolio
Portfolio Pro asset-based loans can provide the cash you need to grow your rental portfolio. Benefits include:
- Get cash from your rental properties – loans from $700K
- Lower your blended rate – consolidate higher-rate loans into a single mortgage
- No personal income verification – lending decisions based on property cash flow*
- No hurdles – lots of loan options designed for you
Advantages of Portfolio Pro
Other advantages of Portfolio Pro include:
- Up to 75% loan-to-value (LTV) for fixed-rate loans
- Interest-only financing available – up to 70% LTV
- 30-year amortizations available
- Variety of property types – single-family, 2-4 units, condos (subject to review), townhomes and apartments
Loan Program # 2 - Foundation Loan
Single-Property Acquisition and Refinance Loans for Rental Property Investors*
Purchase or refinance individual properties with the Foundation Loan. Business loans range from $75K to $750K with up to 80% LTV for acquisitions and 75% LTV for refinances. Asset-based lending decisions are based on property cash flow, not personal income.*
- Competitive 30-year fixed rates
- Loans for single family residences, condos, townhomes, and 2-4 unit residences
- No out-of-pocket loan origination fees - origination fees paid from loan proceeds
From Your First Property to Your 50th
First-time investors and seasoned rental real estate veterans alike can use the single-property acquisition and refinance loan to grow and leverage their rental property investments. Real estate veterans will appreciate the fast and easy online application process, which helps shorten the time needed to lock in that next purchase or refinance.
- Instant rate quotes with no credit check
- Determine ROI potential
- Streamlined online application process
What is B2R Finance?
B2R Finance is a financial technology company founded to address the unique needs and financial goals of single-family rental property investors. Founded in July 2013 by funds managed by Blackstone Tactical Opportunities, B2R operates in partnership with the nation's leading commercial and residential real estate professionals. In early 2015, B2R Finance acquired assets from Dwell Finance, a national bridge lending provider underpinned by a cloud-based financial technology platform. Together, they provide residential buy-to-rent mortgages and offer tailored lending solutions designed for investors at all stages of portfolio growth.
What types of products does B2R Finance offer?
B2R offers portfolio rental property financing and single-property acquisition and refinance loans.
What property types qualify for a loan from B2R Finance?
B2R Finance will lend on a wide range of residential rental property types, including single-family properties, 2-4 unit properties, townhomes, and condominiums (subject to approval). For portfolio loans, the average value of the portfolio must be $50,000 per property. B2R Finance does not currently finance co-ops, manufactured housing, large multifamily properties or vacation rentals. All properties are subject to appraisals and underwriting requirements.
What rates are offered?
B2R offers attractive rates on both fixed- and floating-rate loans. Rates vary based on each individual property and investor. Contact us to learn more.
How much money can I borrow?
The minimum loan amount is $1 million with up to 75% loan-to-value on portfolios of at least 10 units that maintain a 1.15x debt service coverage ratio. Exact loan proceeds are determined by B2R Finance’s underwriting team after a thorough analysis of the value and cash flow of the assets being used as collateral and vary depending on the loan purpose, property and location.
What is Debt Service Coverage Ratio (DSCR)?
The DSCR helps to determine if an investment property (or a portfolio of investment properties) are generating enough income to make its loan payment obligations.
DSCR is calculated as property rent less property expenses and capital expenditures, divided by scheduled principal and interest payments on the loan.
In very simplistic terms, you can think of DSCR as the following formula:
Is there a credit score requirement?
Yes, though requirements vary by product. Contact us to learn more.
Can I live in the property or rent it to a family member?
No. B2R loans are business purpose loans, so you can’t live in the property nor can you rent it to a family member.
What documentation is required?
B2R Finance typically requires the following documentation:
- Rent roll
- Copy of borrower's driver's license or passport
- Completed loan application & property management questionnaire
- Verification of tenancy (refinances; if occupied) through leases and/or rent checks
- Purchase contract or HUD-1/closing statement and any evidence of improvements (purchase or refinance if original purchase is within three months of close)
- Property insurance declarations page
- Account statements to verify liquidity
- LLC documentation and organization chart
- Most recent condo association account statement (if applicable)
- Condo association contact information (if applicable)
- HAP/HUD contract/voucher (for Section 8 properties)
Other documents and/or materials may be requested depending on the facts and circumstances of the borrower or collateral.
Does B2R Finance require reserves?
Yes. Monthly reserves are required for taxes and insurance in the same manner as many traditional residential loans. These reserves are used to pay tax and insurance bills as they become due. Capital expenditure reserves will be collected on a monthly basis to pay for significant repairs and/or replacement of capitalized items (i.e. roof, HVAC, appliances, etc.). The borrower can draw these reserves to pay for expenses. Reserves are also required for HOA and condominium assessments for properties located in certain states.
Can I close in the name of a LLC or a Trust?
B2R Finance requires that all properties be owned by a corporate entity, such as a limited liability company, that only owns the properties that will be financed and no other assets. If the borrower does not have a qualifying corporate entity, B2R can assist in creating one for the borrower during the underwriting process. We will not close in the name of a trust or permit the use of a power of attorney for closings.
Does the property need to be rented at the time of closing?
It depends on the purpose of the loan. If you’re refinancing, the property must either be (a) currently leased or (b) have been leased and occupied within the 60 day period prior to close. In both instances, we require verification of the lease and recent rent payments. If you’re purchasing a property that is not currently leased, we allow you 180 days to install a tenant and verify occupancy. If any vacant property is not leased within 181 days after closing, the loan will immediately become payable in full.
Can I use my current insurance?
B2R requires a policy in place that meets our requirements. If your current policy meets our requirements, of course! If your policy does not meet our requirements, you may choose to have your current provider amend your coverage, or you can work with our preferred providers to obtain the right coverage.
Can a lease contain a lease purchase option?
Lease purchase options cannot be part of the lease structure for B2R loans.
Are ground leases OK?
No, a ground lease is not allowed.
What is the minimum property value required?
For portfolio loans, the average value of the portfolio must be $50,000 per property.
Does B2R Finance lend in every state?
Almost. Loans are not currently available on properties located in Idaho and Utah.
Can I hire a professional property manager to manage my portfolio?
Yes, B2R supports and encourages the use of professional property management. Borrowers who wish to self-manage their properties must meet certain criteria.
Can I manage my own properties?
Yes. Borrowers may self-manage their properties with approval from B2R Finance. Approval is based on the experience and background of the property manager. Generally, a minimum of two years property management experience managing at least the number of homes that B2R Finance is financing is required. Borrowers can also complete an approved property management course in order to self-manage their properties.
Are there minimum seasoning requirements on ownership?
No. There are no minimum seasoning requirements for properties in a Portfolio Pro loan. If the borrower has owned the property for at least three months, B2R will loan up to 75% loan-to-value (LTV). For acquisitions or properties owned for less than three months, B2R will loan up to 90% loan-to-cost (LTC). Cost is defined as the purchase price plus the rehab.
Does B2R have a loan product for first-time investors?
B2R’s division Dwell Finance is excited to offer its new Foundation Loan™, a business purpose loan designed to help rental property investors grow wealth through acquiring or refinancing single-family rental properties. Primary lending criteria for the Foundation Loan is not based on personal income, but on the cash flow of the property. Foundation Loans can range between $75,000 and $750,000 depending on the loan purpose, property and location, with up to 80% LTV on acquisitions. Please note that all Foundation Loans are subject to investor and business credit approval and other underwriting criteria. Application costs, closing fees and other fees may apply.
melissa m tingle says
This has made me want to move forward with flipping house thanks you guys for all you support. mmt 12/27/16